Notification on liability to Pay IGST on High Sea Sale

Notification on liability to Pay IGST on High Sea Sale

The CBEC has released circular to clarify doubts raised by Industry for liability to Pay IGST on High Sea Sale. We are enclosing the circular and summarizing the same quick understanding :

High Sea Sale happens when an Importer sells goods to another customer before the goods are entered for Customs Clearance.

In GST, all Inter-State transactions are liable to IGST.

High Sea sale is treated under Inter-State Sale.

So, industry had a doubt whether IGST would be payable Twice e at the time of clearance of Goods by the Final Buyer (last Buyer) during Customs clearance and again by the Original Importer to the Final Buyer!

Now the Board has clarified that IGST shall be payable only once at the time of Customs clearance (filing of BOE) by the Last buyer.

Every value addition in each stage shall form part of Valuation on which IGST shall be paid

Entire chain of documents to be filed before Customs like Original invoice, High – Sea-Sale contract with importer, detail of Service charge/commission paid for the sale etc to establish link between original import price and the last transaction. Otherwise department may determine value as per customs valuation rule.

Subscribe to Blog via Email

Contact

Company

Disclaimer

We don’t have any links with Institute of Cost Accountants of India (ICMAI) and we are not in association with any particular organization or personality.

We are not charging any amount online or offline for registration and availing other services of our website. Please report us if someone asks for any amount for availing various services of Global CMA website.

Our official WhatsApp Mobile number is 8800881501. There are no other official WhatsApp numbers.